For 2014, the New Products Division, of Testar Company, had operating income of $9,800,000 and operating assets of $46,600,000. The New Products Division has developed a potential new product that would require $10,300,000 in operating assets and would be expected to provide $3,200,000 in operating income each year. Testar has set a target return on investment (ROI) of 22% for each of its divisions. Assuming that the new product is put into production, calculate the residual income for the division. Multiple Choice $442,000 $482,000 $2,718,000 $282,000